MGEX Research

Joe Victor is a Business Development Specialist with Minneapolis Grain Exchange, Inc., where he monitors cash grain activity and cash grain opportunities. He provides marketing advice through this blog.

Soybeans Trading Lower due to Beneficial Brazil Weather

Dec 18, 2012

Hard Red Spring Wheat is trading higher at 11:02 a.m. central time. The outside markets have a lower US Dollar Index and gold futures with the Dow Jones Industrial Average and crude oil futures higher.

Fundamentally the United Kingdom imported twice as much wheat than they exported in the month of October according to sources. The United Kingdom had low yields and low quality for their 2012 wheat harvest. In all of North America Spring wheat has the highest amount of protein of all the wheats.

Technically support is 8944 with resistance of 9180. (March futures)

The Hard Red Spring Wheat spot index price is 843.32

Hard Red Winter Wheat is trading higher. The NWS 6-10 day has moisture for northern KS and two week forecast estimates above normal precipitation for the Southern Plains.

Fundamentally sources suggest the spread between the May and March HRWW futures continues to widen suggesting it pays to store the wheat during what is expected to reduced demand.

Fundamentally sources suggest the spread between the May and March futures suggest it pays to store the SRWW during what is suggested slack demand.

Technical support is 8014 while resistance of 8254. (March futures)

Soft Red Winter Wheat spot index price is 773.51

Corn futures are trading lower. Private meteorologist suggest the two week weather forecast is mainly good for crops other than too much moisture for Rio Grande do Sul.

Fundamentally private meteorologist suggest moisture is good for corn growing regions in Argentina. The soybean cancelation described below may have a drag impact on the corn futures. Sources suggest the demand for US corn is not healthy.

Technical support is 7142 with resistance of 7346. (March futures)

The Corn spot index price is 715.55

Soybeans futures are trading lower. Weather in Brazil is expected to be beneficial according to private weather analysis for the next two weeks. These same private forecasters suggest southern Brazil is likely to experience localized flooding especially in Rio Grande do Sul.

Fundamentally Malaysian Palm oil futures were down 9 points. China Dalian Exchange indicates lower future prices for soybeans and soybean meal with higher soybean oil. China did cancel 300 K tonnes of US soybeans with an unknown destination canceling 120 K tonnes according to USDA.USDA did report the overnight purchase of 110 K tonnes of US soybeans for an unknown destination.

Technical support is 14530 with resistance of 14982. (January futures)